Promise of technology allays concerns over speed of change and disruption
Despite new regulatory and compliance burdens and an increase in new entrants in the marketplace, Canadian insurers are upbeat about their business prospects, finds KPMG in Canada's Canadian insurance industry opportunities & risks report.
Now in its fifth consecutive year, the report found that insurance professionals in Canada are slightly more optimistic than they were a year ago. The upswing in optimism is driven by a shared perception that technology is blazing trails for new, innovative production channels, mobile services and data-driven processes that can enhance the overall customer experience. However, concerns remain over headwinds such as regulatory and compliance burdens, industry disruptors and the rising cost of doing business.
"Like many other sectors of the economy, the insurance industry is being redefined by rapid advances in technology, competition and shifting consumer preferences," says Johannes Pastor, National Sector Leader, Insurance, KPMG in Canada. "This year's survey findings show an uptick in optimism amongst industry players as they accelerate their transformation and innovation efforts to remain competitive and better respond to ever-evolving customer demand. Disruption cuts both ways, however, as new challenges take the fore, including data protection and cyber security."
"The report goes to the core of what is top of mind for Canadian insurance professionals," says Stephen Smith, Partner, Audit, Financial Services, KPMG in Canada. "As insurers shift toward the economy of the future, what remains clear is that customers are at the centre of everything, strategies must be guided by technology, risks are changing and disruption is long term."
About the survey
Each year, KPMG in Canada gathers input from insurance professionals across the country to capture their top opportunities, concerns and contribute valuable insights into an industry that is changing rapidly. The 2018 report builds upon the top trends identified in previous studies, while also looking beyond the numbers to analyze how evolving perceptions around economic growth, technology, regulatory challenges and customer expectations have shifted in recent years. It also takes a closer look at how new innovations—such as blockchain, data analytics, artificial intelligence and cognitive automation—are reshaping the way insurers do business.
Learn more about KPMG in Canada's 5th annual Canadian insurance industry opportunities & risks report by accessing the full report.
Senior Manager, National Communications
KPMG in Canada